History Suggests a Stock Market Crash Is Likely: 5 Data Points of Concern


Whether you realize it or not, investors have witnessed history over the past 18 months. They’ve navigated their way through the quickest decline of at least 30% in the history of the benchmark S&P 500 (SNPINDEX:^GSPC) and have enjoyed the most ferocious bounce-back rally on record. It took less than 17 months for the S&P 500 to more than double from its bear-market bottom.

But if history has anything to say about the stock market in the near term, trouble might be brewing. Five data points all suggest a stock market crash could be on the horizon. Keep in mind that while these data points may be concerning, we can never pinpoint when a crash will happen, how long it’ll last, or how steep the decline will be.

Image source: Getty Images.

1. Crashes and corrections happen frequently

The first thing to note is simply how often stock market crashes and corrections occur in the S&P 500. According to data provided by…

Read more…